Question

Discuss how can one go about testing and proving wage discrimination through empirical research. Justify every step taken . There are discussions to introduce a Basic Income Grant in South Africa, especially after a perception of successful implementation of Covid-19 R350 relief grant. Discuss and demonstrate the possible implication (or lack) on the labour market.

Answer 1

To test wage discrimination through empirical research, experiments can be conducted by randomizing resumes and analyzing earning gaps based on race and gender. Wage discrimination can have various implications on the labor market, such as unequal opportunities and increased income disparity.

Step-by-step explanation:

Testing and proving wage discrimination through empirical research can be done by conducting experiments and analyzing earning gaps based on race and gender. One method is to randomize resumes with different characteristics and apply them to jobs to assess discrimination.

Another method is to compare the average wages of men and women in the same job with the same levels of education, experience, and productivity. This helps determine if there is wage discrimination present. The impact of wage discrimination on the labor market can result in unequal opportunities, reduced economic growth, and increased income disparity. It is important to address wage discrimination to promote fairness and equality in the labor market.

Source: openstax.org